The Texas Right of First Refusal Agreement is a legal provision that grants a party the exclusive right to match or better any offer made by a third party when a property or asset is being sold or leased. This contractual agreement aims to protect the rights of the party by allowing them the opportunity to acquire the property or asset on the same terms as the third-party offer. In Texas, there are various types of Right of First Refusal Agreements, each serving different purposes and covering specific scenarios. Some of the most prevalent types include: 1. Real Estate Right of First Refusal Agreement: This type of agreement is commonly used in real estate transactions, allowing a tenant or an incumbent owner to have the first opportunity to purchase a property before it is offered to the general market. The tenant or incumbent owner has the right to match or exceed any legitimate offer received from third parties. 2. Business Right of First Refusal Agreement: This agreement is often utilized in situations where a business entity's ownership interests or company shares are being transferred. It entitles the existing shareholders or business partners to have the right of first refusal if any shareholder decides to sell their shares. This ensures a fair opportunity for existing shareholders to maintain their ownership stakes and avoid dilution. 3. Lease Right of First Refusal Agreement: In this type of agreement, a tenant is granted the right to match or exceed an offer from a third party when the landlord decides to sell the property or lease it to another tenant. It allows the tenant to retain their existing lease arrangement or secure new lease terms consistent with the third-party offer. It is important to note that the terms and conditions of a Right of First Refusal Agreement can vary, depending on the specific agreement between the parties involved. Factors such as the duration of the agreement, the triggering events that activate the right of first refusal, the notice requirements, and the process for accepting or declining an offer may all be outlined within the agreement.
The Texas Right of First Refusal Agreement is a legal provision that grants a party the exclusive right to match or better any offer made by a third party when a property or asset is being sold or leased. This contractual agreement aims to protect the rights of the party by allowing them the opportunity to acquire the property or asset on the same terms as the third-party offer. In Texas, there are various types of Right of First Refusal Agreements, each serving different purposes and covering specific scenarios. Some of the most prevalent types include: 1. Real Estate Right of First Refusal Agreement: This type of agreement is commonly used in real estate transactions, allowing a tenant or an incumbent owner to have the first opportunity to purchase a property before it is offered to the general market. The tenant or incumbent owner has the right to match or exceed any legitimate offer received from third parties. 2. Business Right of First Refusal Agreement: This agreement is often utilized in situations where a business entity's ownership interests or company shares are being transferred. It entitles the existing shareholders or business partners to have the right of first refusal if any shareholder decides to sell their shares. This ensures a fair opportunity for existing shareholders to maintain their ownership stakes and avoid dilution. 3. Lease Right of First Refusal Agreement: In this type of agreement, a tenant is granted the right to match or exceed an offer from a third party when the landlord decides to sell the property or lease it to another tenant. It allows the tenant to retain their existing lease arrangement or secure new lease terms consistent with the third-party offer. It is important to note that the terms and conditions of a Right of First Refusal Agreement can vary, depending on the specific agreement between the parties involved. Factors such as the duration of the agreement, the triggering events that activate the right of first refusal, the notice requirements, and the process for accepting or declining an offer may all be outlined within the agreement.
